IMPORTANT NOTICE AND DISCLAIMER

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2 IMPORTANT NOTICE AND DISCLAIMER + This document has been prepared by Goodman Group (Goodman Limited (ABN ), Goodman Funds Management Limited (ABN ; AFSL Number ) as the Responsible Entity for Goodman Industrial Trust (ARSN ) and Goodman Logistics (HK) Limited (Company Number ; ARBN A Hong Kong company with limited liability)). This document is a presentation of general background information about the Group s activities current at the date of the presentation. It is information in a summary form and does not purport to be complete. It is to be read in conjunction with the Goodman Group Financial Report for the year ended 30 June 2017 and Goodman Group s other announcements released to ASX (available at It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with professional advice, when deciding if an investment is appropriate. + This Presentation uses operating profit and operating EPS to present a clear view of the underlying profit from operations. Operating profit comprises profit attributable to Securityholders adjusted for profit on disposal of investment properties, net property valuations gains, non-property impairment losses, net gains/losses from the fair value movements on derivative financial instruments and unrealised fair value and foreign exchange movements on interest bearing liabilities and other non-cash adjustments or non-recurring items e.g. the share based payments expense associated with Goodman s Long Term Incentive Plan (LTIP). The calculation of fair value requires estimates and assumptions which are continually evaluated and are based on historical experience and expectations of future events that are believed to be reasonable in the circumstances. + This document contains certain "forward-looking statements". The words "anticipate", "believe", "expect", "project", "forecast", "estimate", "likely", "intend", "should", "could", "may", "target", "plan" and other similar expressions are intended to identify forward-looking statements. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Due care and attention has been used in the preparation of forecast information. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Group, that may cause actual results to differ materially from those expressed or implied in such statements. There can be no assurance that actual outcomes will not differ materially from these statements. Neither the Group, nor any other person, gives any representation, warranty, assurance or guarantee that the occurrence of the events expressed or implied in any forward looking-statements in this document will actually occur. + This document does not constitute an offer, invitation, solicitation, recommendation, advice or recommendation with respect to the issue, purchase, or sale of any stapled securities or other financial products in the Group. + This document does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in the United States or to any US person (as defined in Regulation S under the US Securities Act of 1933, as amended (Securities Act) (US Person)). Securities may not be offered or sold in the United States or to US Persons absent registration or an exemption from registration. The stapled securities of Goodman Group have not been, and will not be, registered under the Securities Act or the securities laws of any state or jurisdiction of the United States. 2

3 CONTENTS + Section 1 Quarterly operational highlights + Section 2 Capital management + Section 3 Quarterly operations + Appendices - Leasing - Development - Management platform 3

4 SECTION 1 - QUARTERLY OPERATIONAL HIGHLIGHTS + Section 1 Quarterly Operational Highlights Centenary Distribution Centre, Australia

5 QUARTERLY OPERATIONAL HIGHLIGHTS + Key highlights for the three months to 30 September 2017 include $1.25 billion of asset sales executed as part of portfolio repositioning $3.5 billion of development work in progress maintained with $0.5 billion of commencements $33.9 billion total assets under management located in core markets + Continued disciplined execution of Group strategy to invest and develop in quality locations in major urban centres that is reflected in 98% occupancy levels across the Group and Partnerships Positive rental reversions of 3.2% 0.9 million sqm leased in the quarter, which equates to $116 million of property income across the global platform + Partnerships undertaking majority of WIP 77% of developments completed within Partnerships Supports Partnership out-performance over the long term Lower capital employed for the Group and higher return on assets (ROA) Enhances diversification and risk management + Strong performance of Partnerships to support ongoing performance fees Transition to net investment via developments in core markets, will support growing management and investment revenues 5

6 QUARTERLY OPERATIONAL HIGHLIGHTS + Asset rotation and focus on gateway markets almost complete with a further $1.25 billion of asset sales in the quarter in line with guidance ABPP sale completed during the quarter for ~$800 million China and Australia portfolios transacted post quarter end Majority of remaining assets to be sold are from the European portfolio + Group s credit strongly endorsed through successful completion of bond tender and new issue US$850 million of 10.5 and 20 year, 500 million 8 year; 144A / RegS bond markets 11.6 year weighted average expiry on new issuances Group average weighted debt expiry increasing from 3.6 to 7.1 years Lower funding costs following the repurchase of PLUS, part repurchase of US and UK denominated bonds and improved Group credit margin + Forecast to deliver FY 2018 operating earnings per security of 45.7¹ cents, up 6% on FY Operating EPS comprises profit attributable to Securityholders adjusted for property valuations, derivative and foreign currency mark to market and other non-cash or non-recurring items 6

7 SNAPSHOT XX%¹ XX%¹ 0%¹ XX%¹ 7

8 MACRO ENVIRONMENT FAVOURS LOGISTICS REAL ESTATE + Macro structural factors continue to positively impact demand for logistics real estate - Growing consumer demand in urban centres as consumption per capita increases significantly 1 - Disruption from rapid changes in technology, rise of e-commerce and support of omnichannel distribution Global consumption 1 + E-commerce market participants are disrupting traditional retail access to industrial real estate is a key differentiator for this industry - Consumers continue to drive worldwide retail spending, with expectations of 20% growth to US$27 trillion by E-commerce sales are expected to grow at three times the rate of traditional sales, increasing by more than 60% in the next three years 2 to reach US$3.9 trillion by Traditional retail is increasingly adapting to include e-commerce and associated logistics requirements - Strategically located industrial real estate in close proximity to consumers is a key differentiator for capturing market share and to meet the growing demands and expectations for same day delivery. Global retail e-commerce sales 2 + The deliberate repositioning of our business has positioned the Group for this transition - Land in prime locations is very hard to replicate, driving higher rents - Modern warehouses must be capable of handling increased volumes and new technologies - The portfolio is now concentrated in consumer dominated urban centres 1. Source: Urban world: The Global Consumers to watch, McKinsey Global Institute April Source: emarketer: Worldwide Retail and Ecommerce Sales: emarketer's Estimates for

9 SECTION 2 - LIABILITY MANAGEMENT + Section 1 Quarterly Operational Highlights Centenary Distribution Centre, Australia

10 LIABILITY MANAGEMENT + Over the past few years the Group has been implementing a robust capital management framework, which includes a revised Financial Risk Management (FRM) policy. This provides; Stronger balance sheet which has been reflected in higher credit ratings Enhanced flexibility through amended covenants Diversified sources of funding that increases available options through the cycle Long term debt sources to stabilise the funding base + The Group has delivered consistent performance over a long period in order to gain significant credibility in the debt capital markets and with ratings agencies Group Credit rating has increased one notch from S&P and Moody s to BBB+ and Baa1 respectively due to the amended FRM policy + The Group has been actively reducing financial leverage in the business given its desire to run low gearing at this point in the property cycle Group target gearing range reduced to 0% - 25% (from 25% - 35%) and reflective of existing practice Gearing level will be determined with reference to mix of earnings and ratios consistent with credit rating + Bond and bank amendments provide enhanced flexibility, to continue to pursue our strategies for divestment and re-deployment of capital in the current market Key amendments included tightening the leverage covenants and completely removing the unencumbered real property assets covenant + FRM policy changes provide operational and balance sheet flexibility whilst maintaining the ability to absorb changes in market conditions 10

11 LIABILITY MANAGEMENT Significant capital management exercise undertaken during the quarter + Extended debt maturity profile for the long term to ensure the Group has the ability to continue to operate efficiently and invest through the cycle mitigating volatility in capital markets - Repurchased shorter dated bonds and hybrids worth A$1.7bn and issued new Bonds in USD and EUR in the 144A / RegS market worth A$1.8bn, across 8, 10.5 and 20 year terms. Weighted average debt expiry of new bonds was 11.6 years - Replaces old bonds and PLUS hybrid notes that were issued in different market conditions + The capital management exercise has materially extended the Group s debt maturity profile and reduced overall cost of debt - Provides capacity to absorb short term dilution from the asset sales program and locked in certainty of funding for the long term - Structure provides natural currency hedging + As a result, weighted average debt maturity has increased from 3.6 years to 7.1 years and weighted average cost of debt decreased 11

12 LIABILITY MANAGEMENT Debt Maturity Profile Pre / Post Liability Management Drawn debt Transaction Summary Type Size Maturity New issue EUR500m 2025 New issue US525m 2028 New issue US325m 2037 Repurchase (US325m) 2020 Tender (US325m) 2021 Tender (GBP129m) 2018 Tender (US220m)

13 SECTION 3 - QUARTERLY OPERATIONS + Section 1 Quarterly Operational Highlights Centenary Distribution Centre, Australia

14 QUARTERLY OPERATIONS - OWN + Underlying property fundamentals in our global portfolio remain sound Total AUM by type Leased 0.9 million sqm across the platform over the period equating to $116 million of annual net property income Maintained occupancy at 98% Retention remains high at 78% WALE of 4.8 years Positive reversions of 3.2% per annum on new leasing deals On track for strong like for like NPI growth + $1.25 billion of asset sales completed in the quarter (excluding urban renewal sites) across the Group and Partnerships Assets located across Australia, China, Continental Europe and UK Improving quality of the portfolio and income being generated + Demand and pricing for industrial assets remains strong + Continue to target sites / assets in infill locations or gateway cities 14

15 QUARTERLY OPERATIONS - LEASING¹ Across the Group and Partnerships: million sqm leased during the period + Reversions of 3.2% on leasing transactions + High occupancy across the portfolio, increased to 98% Region Leasing area (sqm) Annual NPI ($M) Average lease term (years) Australia / New Zealand 299, Asia 311, UK / Continental Europe 313, Total 924, Leasing for stabilised properties only 15

16 QUARTERLY OPERATIONS - OWN Sale Leasing Costco, Goodman Commerce Centre, Eastvale, USA JD.com, Landport Logistics Estate, Tianjin, China Amazon, Pforzheim, Germany Kuehne + Nagel, Tiel Logistics Centre, Netherlands Vatry, Framce Customer Costco Customer JD.com Customer Keuhne + Nagel Transaction Type Ground lease Transaction Type Lease Transaction Type Lease Lettable area 16.1 acres Lettable area 28,021 sqm Lettable area 56,625 sqm Contracted owner GNAP Contracted owner GCLP Contracted owner GEP Description + 158,000 sqft retail warehouse plus a 30 vehicle gas station + Will form part of the 205 acre mixed use development comprising logistics, business park and retail + Scheduled to open by the end of 2018 Description + Strategically located in Landport Logistics Park, a key logistics hub in northern Tianjin + Lease renewal across three units within the estate Description + Located in Tiel, a prime well established logistics park 35km west of Nijmegen and 80km east of Rotterdam, 80km north of Eindhoven Airport + Good access to major infrastructure, amenities and the national road network 16

17 QUARTERLY OPERATIONS - DEVELOP + Development WIP of $3.5 billion across 76 projects with a forecast yield on cost of 7.7% Development WIP + Development commencements of $0.5 billion with 55% precommitted and 90% developed for Partnerships or third parties + Development completions of $0.5 billion with 87% pre-committed and 66% developed for Partnerships or third parties + Development workbook continues to be supported by Growth in e-commerce and changing consumer spending Customers seeking efficiencies in their supply chain networks Structural undersupply + North America increased contribution to developments with $203 million of commencements in the quarter Work in progress as at 30 September

18 QUARTERLY OPERATIONS - DEVELOP Q1 FY18 Developments Completions Commencements Work in progress Value ($m) ,482 Area (m sqm) ,214 Yield (%) Pre-committed (%) Weighted Average Lease Term (years) Development for Third Parties or Partnerships (%) Australia / New Zealand (%) of WIP Asia (%) of WIP Americas (%) of WIP Europe (%) of WIP Work in progress by region On balance sheet end value $m Partnerships end value $m Total end value $m Partnerships % of total Pre committed % of total Australia / New Zealand Asia Americas Europe Total 795 2,687 3,

19 QUARTERLY OPERATIONS - DEVELOP Sale Leasing Cdiscount, Saint Marde, France syncreon Technology, Carlise, Central PA, USA Chinese 3PL, Goodman Boluo Logistics Park, China Lettable area Contracted owner GEP 24,000 sqm Lettable area 93,634 sqm Amazon, Pforzheim, Germany Contracted owner GNAP Lettable area 86,818 sqm Vatry, Framce Contracted owner GCLP Location Saint Marde, France Location Carlisle, Central Pennsylvania Location Boluo, Huizhou Customer Cdiscount Customer syncreon Technology (3PL) Customer Chinese 3PL Description + 24,000 sqm expansion space adjacent to an existing 90,000sqm facility that completed in October The site is located 30km North of Paris and is only 10km from Charlesde-Gaulle airport + Completion expected early 2018 Description + 7 year pre-commit to building 1 at Goodman Logistics Centre, Carlisle + Provides direct access to Interstate 81, one of the major transportation networks servicing the Greater Northeast + syncreon will utilise the building for the distribution and storage of various technology devices + Completion expected early 2018 Description + Phase 1 is a 51,404sqm facility 100% leased to e-commerce related customers + Commencement of phase 2 with a 86,818sqm warehouse + Pre-commit secured to a Chinese 3PL, for 17,152sqm over 5 years + Completion expected November

20 QUARTERLY OPERATIONS - MANAGE + External AUM of $30.2 billion Development work book and revaluations offsetting asset sale Total AUM + Completion of sale of ABPP + Dilutionary effect from asset sales expected to moderate as targeted program reaches completion and the Partnerships move to net investment Income growth and strength in asset pricing expected to lead to performance fees in future periods Lower interests costs will mitigate some dilution + Brazil Partnership in advanced documentation Develop to hold strategy with a ~$1 billion equity commitment Total AUM by geography 20

21 MANAGEMENT PLATFORM¹ GAIP GHKLP GEP GAP GCLP GMT GJCP GNAP GUKP 1 Total assets $6.9bn $4.7bn $4.6bn $3.6bn $3.0bn $2.4bn $2.1bn $1.3bn $0.3bn² GMG co-investment 27.9% 20.0% 20.4% 19.9% 20.0% 21.1% 17.3% 55.0% 33.3% GMG co-investment $1.3bn $0.7bn $0.5bn $0.6bn $0.5bn $0.3bn $0.2bn $0.7bn $0.1bn Number of properties Occupancy 97% 99% 98% 98% 99% 98% 100% 100% 100% Weighted average lease expiry3 5.0 years 2.8 years 5.2 years 4.5 years 3.5 years 5.8 years 3.4 years 5.4 years 7.6 years 1. As at 30 September Built out end value A$ 3. WALE of leased portfolio to next break as at 30 September

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